Optimism surrounding Sino-US trade negotiations has propelled major A-share indices to open and close at higher levels, with the Shanghai Composite Index extending its winning streak to five consecutive days. The pharmaceutical sector has witnessed a broad-based surge, with innovative drug stocks leading the charge, hitting daily limits. Additionally, rare earths, the sports industry, and military industries have also demonstrated robust growth. Conversely, highway and railway transport stocks lagged behind, occupying spots among the top decliners. Given the current market dynamics, TF Securities advises adopting a cautious approach in June, emphasizing three key areas: the expansion of the technology AI+ sector, the valuation recovery of consumer stocks, and the appreciation of undervalued dividend-paying companies.